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Buyer
Position title for a procurement
professional or other staff who purchases or
procures goods and services. See also: Law of
Agency, Principal, Agent.
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Buyer-Seller Relationships
There are three
principal relationships between buyers and
suppliers:
1. Transactional: An arm’s-length relationship,
wherein neither party is concerned with the
well-being of the other. Price is the focus of
the relationship.
2. Collaborative: A strategic relationship that
results in the reduction of risk and
uncertainty. This type of relationship creates
interdependency and cooperation.
3. Alliance: A relationship that is based on
institutional trust. Alliance partners share a
vision of the future in which ethics take
precedence over expediency.
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Buyer’s Market
An economic situation in which
the supply of a good or service exceeds
demand, resulting in lower prices.
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Buyer’s Option
The contractual right, established
in a purchase document, to buy a good or
service at a fixed price within a specified time.
See also: Option.
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Buyer’s Right of Routing
The right of the buyer to
select the carrier to be used for the shipment
of goods when the buyer pays freight charges;
the buyer’s right to name the carrier must be
made part of the sales contract before the
shipment of goods if the supplier prepays
the freight.
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Certified Professional Public Buyer (CPPB)
A
designation offered by the Universal Public
Procurement Certification Council to
procurement professionals responsible for
performing essential functions within the
procurement cycle (but who may or may not
have management or supervisory
responsibilities) who have demonstrated
prescribed levels of professional competency
in the field of public procurement.
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Relationships (between Buyer and Seller)